The fund is being launched primarily for European retail and institutional investors and is currently only available in a Euro share class. It is a sub-fund of BNY Mellon Global Funds and will be managed by James Harries, director of investment, global funds at Newton.
Using BNY Mellon’s thematic investment approach, Harries will aim to provide a total return in excess of a cash benchmark over three to five years. He will have the ability to invest freely in a wide range of asset classes including equities, equity-related securities, fixed income securities, deposits, derivative instruments, cash, money-market instruments and cash equivalents. Ian Stewart, director of investment, global funds, will act as alternate manager on the fund.
Paul Feeney, head of international distribution at BNY Mellon said: “The BNY Mellon Global Real Return Fund (EUR) is aimed at European investors seeking absolute returns from a diversified strategy with potentially lower volatility levels than equities.
“We believe a wide group of clients in Europe will be increasingly interested in investing in this kind of strategy. Pension funds, for example, have indicated a willingness to increase their positions in diversified and absolute return fund strategies in general.”
